African Bank has reported half-year losses of R44 million and a significant increase in impairment charges as it prepares for potential bad debts. The bank’s interim results showed a 240% rise in impairment charges, resulting in bad debt provisions of R2.2 billion. In response to the challenging economic climate in South Africa, African Bank has reduced lending and adjusted its risk appetite to be more selective in granting loans. The bank aims to improve its coverage ratio and return to profitability when it releases its full-year results in November. Despite the losses, African Bank saw growth in operating income before credit impairments and non-interest income.
